Worth It?HistoryDatabaseCompareDistress SignalsFDD Changes
QSRLimited DataItem 19: ✓ DisclosedQuality: 85/100

Taco Bell

Based on 2025 FDD · 3 filings in corpus

FranchiseIQ Score
74
B
Moderate-Low Risk
Composite score based on SBA default rate, unit growth, disclosure quality & investment efficiency.
Total Investment Range$1.9M – $4.3M
MinMid: $3.1MMax

Key Metrics

Franchise Fee
$45K
Royalty Rate
5.5%
Ad Fund Rate
4.3%
Total Burden
9.8%
Royalty + ad fund
Units (2023)
7,198
+166 vs prior yr
Net Unit Growth
→ 2.4%
Year over year

Financial Analysis

Cash-on-Cash Return
—
Annual estimated return
Payback Period
—
Break-even timeline
SBA Default Rate
2.6%
vs ~7.2% industry avg
Median Revenue
—
Item 19 disclosed

Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.

Taco Bell vs. QSR Average

MetricTaco BellQSR Avg
SBA Default Rate2.6%▲9.4%
Cash-on-Cash Return—14.2%
Total Investment$3.1M$380K

Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.

Compare

Taco Bell vs Chick-fil-A, Inc.Taco Bell vs Loving CupTaco Bell vs Donut King

Similar Franchises · QSR

Chick-fil-A, Inc.
Revenue Only
$427K–$2.3M
Loving Cup
No Item 19
$166K–$242K
Donut King
Limited Data
$211K–$332K
Chick-fil-A, Inc.
$427K – $2.3M
Loving Cup
$166K – $242K
Donut King
$211K – $332K
Crust Gourmet Pizza Bar
$210K – $264K

Questions to Ask Before You Sign

5 data-driven questions every Taco Bell franchise buyer should ask.

  1. 1.What is Taco Bell's SBA default rate compared to its competitors?Learn more →
  2. 2.Does Taco Bell disclose Item 19 financial performance representations?Learn more →
  3. 3.What is the net unit growth trend over the past 3 years?Learn more →
  4. 4.What is the franchisee termination and transfer rate per Item 20?Learn more →
  5. 5.What do the FDD litigation disclosures (Item 3) reveal about franchisor legal history?Learn more →
Generate attorney questions for Taco Bell →Validation call guide →

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Data sourced from publicly filed Franchise Disclosure Documents (FDDs) submitted to state franchise regulators. SBA loan data from public SBA 7(a) records. Information reflects the most recent FDD filing in our database and may not reflect current terms. Always verify with the franchisor's current FDD before making any investment decision. Not legal or financial advice.